Here’s the takeaway from MDM’s Mid-Year Economic Update Webcast on June 19, which took the pulse of U.S. economic conditions and the wholesale distribution industry: Many indicators point to the U.S. economy strengthening.

While we may not have the same growth rates as the first few years of recovery, conditions are stabilizing to support sustained growth for the next few years. The primary headwinds are governmental gridlock, sequestration and the inability to deal with the deficit.

Data from MDM’s just-released Wholesale Distribution Economic Trends Report show that total revenues of wholesale distributors grew by 5.1 percent to $4.9 trillion in 2012, following double-digit growth the previous two years following the recession.

Revenues increased by 3.7 percent after adjusting for the effects of price change (inflation and deflation mostly in the agriculture and energy sectors). MDM forecasts that industry revenues will increase by 5.4 percent in 2013, with modest U.S. economic growth of 2.2 percent.

Based on MDM surveys and research, distributors and manufacturers are still reluctant to invest – even into 2013 – because of continued instability. There is a tough decision point that takes place after every downturn about when and where to invest.  But as MDM has reported, many leading distributors big and small invested in sales and technology resources at the depth of the recession, and were able to gain significant share and competitive advantage over competitors who were handcuffed by an inability to invest.

We hope this special double issue of MDM, together with other MDM research resources, will help you make investment decisions with as much data and information as possible about market opportunities and trends.

Growth in 2013 might not “feel” great compared to the prior few years, but there are clear signs that we are past the major upheaval and disruption as the industry repositions. That’s not to say it’s back to the way it used to be. We’ll continue to see major competitive shifts and technologically-driven changes affecting every sector of distribution. And MDM will be there to cover it.

View sector-specific and other trends affecting the industry in the full report.